Telecom Crisis Deepens as Diesel Blockade Threatens 16,000 Sites

Nigeria’s telecommunications industry is at a critical juncture following a blockade of diesel depots in Kaduna, Lagos, and Delta by the National Union of Petroleum and Natural Gas Workers (NUPENG) and the Nigerian Oil and Gas Suppliers Association (NOGASA). These groups have halted diesel distribution in protest against alleged harassment of tanker drivers by security operatives, creating a severe fuel shortage that threatens the operation of approximately 16,000 telecom sites [1]. The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has issued a warning to the federal government, emphasizing the urgency of the situation and the potential for nationwide connectivity blackouts [1].

Gbenga Adebayo, ALTON’s Chairman, highlighted that the diesel supply crisis is severely impacting the operations of telecom operators. Nigeria’s power grid is unreliable, necessitating a heavy reliance on diesel generators to maintain 24-hour connectivity. Industry data indicates that telcos consume an average of 40 million litres of diesel monthly to operate over 53,000 base stations, supporting more than 200 million mobile subscribers [1]. The price of diesel has surged to N1,406.05 per litre in August 2024, a 64.58% increase compared to the previous year, inflating monthly energy costs for telecom operators to N56.24 billion [1].

With the current blockade in place, operators are unable to procure fuel even at elevated prices, creating a compounding crisis. The Federal Government Gazette No. 133, Volume 108, dated March 17, 2021, classifies telecommunications infrastructure as Critical National Infrastructure (CNI), underscoring the gravity of the situation. ALTON warns that a prolonged shutdown could cripple Nigeria’s digital economy, particularly affecting emergency response systems, financial services, and national security communications [1].

Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria (ATCON), described the situation as a national emergency and urged Lagos and Ogun state governors to intervene and restore diesel access. ALTON and ATCON have called for coordinated national action, including support from regulators and security agencies, to protect telecom infrastructure. While telecom operators are exploring renewable energy solutions, such as solar and lithium-ion batteries, these alternatives face challenges like theft and high initial costs [1].

In 2023, WATT Renewable Corporation signed a $13 million deal to modernise 200 telecom sites, aiming to cut diesel consumption by 3 million litres annually. However, such initiatives do not address the immediate crisis, which requires urgent government intervention to restore fuel supply chains [1].

A telecom shutdown would have wide-ranging consequences. Disrupted connectivity could hinder business growth, impede healthcare systems reliant on telemedicine, and compromise national security operations dependent on secure communications. ALTON has previously warned of "service shedding," where operators may limit services in certain areas due to unsustainable costs. The diesel crisis could accelerate this scenario, particularly affecting rural areas where operational costs are already high due to poor grid access [1].

As the telecommunications sector awaits urgent action from the federal government, the potential for a communications blackout looms, threatening to derail Nigeria’s digital transformation efforts.

Source: [1] Call and data service disruption looms as oil workers strike ... (https://technext24.com/2025/08/07/telecom-disruption-loom-oil-workers/)